Duc Giang - Lao Cai Chemicals power station

From Global Energy Monitor

Duc Giang - Lao Cai Chemical power station is a proposed 100-megawatt (MW) coal-fired power plant at the site of the Duc Giang Lao Cai chemical plant, in Lào Cai province, Vietnam.

Location

The map below shows the location of the Duc Giang Lao Cai chemical plant, in Tằng Loỏng town, Bảo Thắng district, Lào Cai province. The coal plant would power that chemical plant, and would presumably be located in or very near to this facility.

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Background

On October 11, 2016, the Prime Minister issued Document No. 1778 / TTg-KTN on supplementing the coal plant into the National Power Development Plan. The proposal is to build a two-unit, 100-MW coal-fired power plant to power the Duc Giang - Lao Cai chemical plant in Lao Cai province, near the border with China.[1]

In April 2017, plant sponsor Duc Giang - Lao Cai Chemicals Joint Stock Company reported that it was breaking ground on the project. Construction is expected to take 24 months from the date of leveling, with completion expected in 2019 or 2020. According to the announcement for the ground-breaking, the plant will provide electricity for the Duc Giang Chemical Complex in Lào Cai, which produces phosphorus and other products. Currently, electricity makes up 26% of the expenses at the complex. Coal use is expected to be about 320,000 tons per year, sourced from Quang Ninh (expected type 6) or from China by waterway and road.[1]

In June 2017, Duc Giang - Lao Cai Chemicals Joint Stock Company said it planned to issue US$92 million in bonds to finance the plant. The project would be completed in 2019 or 2020.[2]

The plant is intended to be run 7,200 hours per year, generating 720 million kWh/year. Of this, 12% is self-consumption by the plant and power supply is 634 million kWh/year.[1]

In December 2019, Lao Cai province rejected the chemical plant's construction investment for the coal-fired power station, citing environmental concerns.[3] As of June 2021, there have been no subsequent announcements of progress on construction on the power station, and the project appears to be shelved.

The September 2021 draft of the Power Development Plan 8 (PDP8) gives a commissioning date of 2031-2035 for the plant.[4]

An October 2021 report by GreenID lists the Duc Giang - Lao Cai Chemicals power station as one of 18 coal-fired power stations in Vietnam that was struggling to secure financing. Given that China, Japan, and South Korea have all committed to stop financing new coal-fired power stations, it will be extremely difficult for any of these projects to secure funding in the future.[5]

On July 4, 2022, the Ministry of Industry and Trade appeared to provide an update on the draft PDP. The document’s list of major power projects planned for 2021-2030 (PDF pages 18-20) did not include the project.[6]

Environmental impact

In May 2018 mud and soil dislodged by the Duc Giang Lao Cai chemical plant damaged rice fields in Xuan Giao commune, Bao Thang district, Lao Cai province.[7]

In 2021, Duc Giang - Lao Cai Chemicals Joint Stock Company was sanctioned three times for violations of natural resources and environmental laws. The violations ranged from waste dumping to failing to adequately monitor raw mineral storage and transportation.[8]

Project Details

  • Sponsor: Duc Giang - Lao Cai Chemicals Joint Stock Company
  • Parent company: Duc Giang - Lao Cai Chemicals Joint Stock Company (DGC)
  • Location: Duc Giang Lao Cai chemical plant, Tằng Loỏng town, Bảo Thắng district, Lào Cai province, Vietnam
  • Coordinates: 22.3043761, 104.1469831 (exact)
  • Status: Shelved
  • Gross Capacity: 100 MW (2 x 50 MW)
  • Type: circulating fluidized bed
  • Projected in service: 2031-2035
  • Coal Type:
  • Coal Source: Quang Ninh Coal (expected type 6) or China, by waterway and road
  • Source of financing: 30% internal capital; 70% loan of VND1,400 billion borrowed from Vietcombank[1]

Articles and resources

References

Related GEM.wiki articles

External resources